Published:
Keppel's offshore, marine operating margins balloons to 14.1%
Even if drawdown was sluggish.
According to DBS, stripping out impairment charges, fair value and divestment gains, core net profit was S$331m (-56% y-o-y), making up 21% of our and consensus’ full year estimates.
DBS also said that O&M orderbook drawdown appears slower than expected probably due to timing of recognition of projects. However, we are cheered by the O&M operating margins, which expanded for a second consecutive quarter to 14.1%, from the trough of 12.9% in 3Q12.
"We believe margins could revert to 15% by FY14 on productivity gains and a pick up in contribution from higher-margin conversion projects," DBS said.
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